Market Tracker trend report: Voting results - the 2020 AGM season

Market Tracker trend report: Voting results - the 2020 AGM season

Background and scope

This Market Tracker update examines shareholder voting patterns at the annual general meetings (AGMs) of FTSE 350 companies during the 2020 AGM season, using data from the 2019 AGM season for comparative purposes. For inclusion in the report, companies must be listed on the FTSE 350 at the date of the end of their financial year.

We looked a total of 284 companies (94 FTSE 100 companies and 190 FTSE 250 companies) with a financial year end from 1 April 2019 to 31 March 2020, which, for the purposes of this report has been defined as the ‘2020 AGM season’. Our data set for the voting research includes real estate investment companies but excludes closed-end investment companies due to their different structure and the inconsistent impact it would have on our statistical findings.

Data for this report has been sourced from the Market Tracker transaction data analysis tool which allows users to access, analyse and compare the specific features of corporate transactions. This is an update to the voting section of our AGM Season 2019 Trend Report, which examined the market practice and trends emerging from the FTSE 350 AGM season 2019.

The percentages included in this report have been rounded up or down to whole numbers, as appropriate.

AGM voting results - highlights

  • Slight increase in the number of companies experiencing failed resolutions in the 2020 AGM season (4%) compared to the 2019 AGM season (3%)
  • Significant opposition to resolutions continued to decline slightly to around 22% of companies reviewed (2019: 24%, 2018: 25%)
  • Withdrawn resolutions hit a record high, boosted by 13% of companies reviewed cancelling their final dividend payments
  • Executive pay the most hotly contested resolution, accounting for 33% of all failed resolutions and 41% of resolutions that carried significant no votes
  • Marginal increase in opposition to director re-election resolutions, with 34% of proposed resolutions attracting significant dissent (2019: 33%)
  • In line with the requirements of the UKCG Code 2018 and the FRC's 

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About the author:

Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.